Christopher Alexander, Author at REM https://realestatemagazine.ca/author/christopheralexander/ Canada’s premier magazine for real estate professionals. Fri, 17 Jan 2025 15:30:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://realestatemagazine.ca/wp-content/uploads/2022/09/cropped-REM-Fav-32x32.png Christopher Alexander, Author at REM https://realestatemagazine.ca/author/christopheralexander/ 32 32 Alexander: The mega team myth—leadership and production trump headcount every time https://realestatemagazine.ca/alexander-the-mega-team-myth-leadership-and-production-trump-headcount-every-time/ https://realestatemagazine.ca/alexander-the-mega-team-myth-leadership-and-production-trump-headcount-every-time/#comments Thu, 16 Jan 2025 10:03:11 +0000 https://realestatemagazine.ca/?p=36735 In his latest column, Re/Max President Chris Alexander challenges the “mega team” model, arguing that leadership and production matter far more than inflated numbers

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What kind of real estate team are you running? Is it one based on ego, or on success?

These are important questions, as we find ourselves on the precipice of what could be the next real estate boom. Lower interest rates are attracting sellers and buyers into the market once more, prices will rise and a flood of new agents (with the best intentions) will follow.

As those agents come knocking on your door, you should be asking yourself: is more really more?

 

The promise and pitfalls of mega teams

 

The “mega team” model has been gaining more attention recently, and of course, it can work, but only under the right leadership. Real estate is a naturally competitive business, and I’m flabbergasted that in today’s transparent world, where everyone can see what their colleagues and counterparts are producing, the size of so many of these “mega teams” still outweigh their production.

 

New agents: The advantages of joining the right team

 

As a new agent just starting out, joining a team can be career changing. Most of your expenses are covered by your split, your marketing is done for you, and you have direct access to hands-on mentorship. The right team can help new agents gain traction and set them up for success, until they’re off and running all on their own. 

 

Team leaders: Balancing quality and quantity 

 

As a team leader, working with top-performing agents can be incredibly rewarding. Imagine the potential of leading a mega team of a hundred high producers – that’s more power, and significantly more income, in your hands.

However, investing in a team with too many low- or non-producers who occupy your office, consume your resources, and demand your attention as a leader is unlikely to yield any meaningful returns. Even if you charge high office fees, retaining these underperformers ultimately distracts from the productivity of your high-achieving team members and undermines their efforts.

 

Strong leadership is the key to navigating market cycles

 

The success and sustainability of a mega team, or any team model for that matter, comes down to two critical factors: strong leadership that is hyper-focused on agents’ success, and agents who sell a lot of real estate. To our home-buying and selling clients, we always tout the benefits of “local” market expertise. This is also the case when it comes to team leaders.

Since booms are sometimes followed by busts, solid leadership makes all the difference. Shooting fish in a barrel doesn’t require much skill and it doesn’t demand leadership, only opportunity. This can be said of an “up” housing market. But what goes up eventually comes back down, and when it does, experienced leadership and a brand invested in its network’s success will help individual agents and brokers weather those up, down and sometimes sideways markets.

 

The bottom line 

 

If you’re a team leader, don’t get caught up in the quantity of your agents over their quality, and remember that the bigger team doesn’t always win.

If you’re a team member, ask yourself if your environment and the people in it are lifting you up and encouraging you to be your best self, or if they’re dragging you down. Be wary of the mega team that doesn’t have the production to back up its numbers.

Leaders are responsible for developing strong, professional agents and ensuring they can weather any storm. Whether it’s the fluctuating economy or a chronic housing shortage, there’s no question that running a successful real estate business demands a whole lot of strategy. Given these macro and micro complexities, make sure your agents are professional and ready to work for the team – regardless of its size.

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]]> https://realestatemagazine.ca/alexander-the-mega-team-myth-leadership-and-production-trump-headcount-every-time/feed/ 3 Year-in-review and what lies ahead for Canadian real estate in 2024 https://realestatemagazine.ca/year-in-review-and-what-lies-ahead-for-canadian-real-estate-in-2024/ https://realestatemagazine.ca/year-in-review-and-what-lies-ahead-for-canadian-real-estate-in-2024/#comments Mon, 29 Jan 2024 05:03:29 +0000 https://realestatemagazine.ca/?p=27882 “We believe in the long-term health of Canada’s housing market. To protect it, we need to address the housing supply shortage across the country”

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The Canadian Real Estate Association (CREA) released its housing market statistics for the final month of 2023 last week, closing out a year that can be defined as, if anything, “unpredictable.”

According to CREA’s December report, 2023 ended with a jump in sales and a year-over-year decline in listings and prices.

 

Governments need to take action

 

Some may view this glimmer of hope as the precursor of increased market activity ahead, but the reality is that Canadians are still navigating a housing crisis, rooted in severe inventory and affordability challenges across the country, which will continue to persist this year.

With high demand (which is expected to continue to grow as immigration rises), and low inventory, there’s a dire need for governments at all levels to collaboratively enact new measures and policies that make the market more affordable and accessible for all.

After all, according to Leger research recently commissioned by Re/Max Canada, most Canadians (73 per cent) perceive home ownership as the best investment they could make. Governments should support these aspirations.

 

2024 trends

 

Reflecting on the past year and looking ahead to what’s on the horizon for 2024, here are some of the trends that are likely to play the biggest roles in the Canadian real estate market.

 

The stats: A deeper dive on home sales & outlook for 2024

 

In line with Re/Max’s housing price outlook for 2024, the market is likely to be active in the first quarter and into the spring — a trend that is already starting to materialize. Interest rates, higher demand and low inventory will continue to heavily influence the market this year.

 

The interest rate effect

 

Over the past year, Canadians faced some of the highest interest rates seen in decades. This, coupled with the lack of housing inventory, resulted in a softening market in the latter half of 2023.

As we look ahead, with another possible pause or even a slight decline in interest rates on the horizon, interest rates will likely be a prominent influence on market activity — especially considering that many Canadians have taken a “wait and see” approach when it comes to their housing ambitions. 

 

Nationwide insights

 

Re/Max brokers and agents in key regions from coast to coast provided their market insights. Here’s how these influencing factors are expected to play out regionally in 2024: 

In Western Canada, major and growing cities such as Vancouver, Nanaimo, Saskatoon and Edmonton are anticipating a rise in residential prices between 2 and 4 per cent. In contrast, Victoria and Regina are anticipating a slight decrease of 2 per cent. 

Ontario’s more populous markets are seeing increases from 2 to 7.5 per cent, while smaller markets that boomed during the pandemic could experience a decline of up to 5 per cent and a steady state in markets across the GTA and up north.

In Montreal, prices will likely remain steady, although interest rates could encourage more homeowners to list their properties. 

Atlantic Canada, once a haven for Canadians seeking affordability, is anticipating modest increases across the board of around 3 per cent in the region’s largest and growing markets.

 

Acknowledging and addressing Canada’s housing shortage: A must

 

The Canadian housing market has historically given homeowners great returns and solid financial security. We believe in the long-term health of Canada’s housing market but, to protect it, we need to acknowledge and address the housing supply shortage in every city, town and neighbourhood across the country.

In 2024, I hope we can take steps toward achieving this goal. I encourage visionary thinking and solutions that may include reforming municipal zoning laws to allow for a greater diversity of housing, expanding capacity for laneway developments and using available land to drive housing supply in a manner that doesn’t compromise climate adaptation and mitigation efforts. For that to happen, some tough decisions need to be made.

 

Over 65% of Canadians agree

 

Research conducted by Re/Max Canada in 2023 showed that Canadians strongly believe that addressing the affordability and housing supply crisis should be among the top priorities for governments across the country (66 per cent). Additionally, 41 per cent feel that removing zoning and development red tape is a key measure toward improving supply — something they hope will continue.

 

So, let’s keep our eyes on the prize this year. 

 

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]]> https://realestatemagazine.ca/year-in-review-and-what-lies-ahead-for-canadian-real-estate-in-2024/feed/ 1 Open bidding options in Ontario: A small piece of a larger puzzle https://realestatemagazine.ca/open-bidding-options-in-ontario-a-small-piece-of-a-larger-puzzle/ https://realestatemagazine.ca/open-bidding-options-in-ontario-a-small-piece-of-a-larger-puzzle/#comments Thu, 21 Dec 2023 05:02:48 +0000 https://realestatemagazine.ca/?p=26825 It’s important Canadians see the end of blind bidding for what it is: a more transparent home-buying and selling process, not a market-cooling measure

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Open bidding was introduced in Ontario at the beginning of December as part of the latest update to Ontario’s realtor legislation, the Trust in Real Estate Services Act. The legislation gives sellers the option to disclose submitted bid prices to potential buyers, an important caveat (i.e. the option) to this plan to ensure fairness among both buyers and sellers.

This has been a hot topic since the spring of 2022 when the Liberals proposed to create a national bill, A Home Buyer’s Bill of Rights, that would “make the process of buying a home more open, transparent and fair,” according to a statement from the government. The bill also included a national plan to end “blind bidding,” a process that has frustrated buyers and has often been blamed for driving up home prices across the country. 

 

Mixed sentiments and past experience

 

The move in Ontario has been positively received by some governments and real estate professionals who maintained that doing this could curb artificially inflated selling prices and address Canada’s housing affordability challenges. 

However, Canada’s housing affordability crisis didn’t start — and it won’t end — with blind bidding.

For several years now, Re/Max has been advocating for greater transparency in the home-buying process. While this is a step in the right direction, the reality is, Canada’s housing affordability crisis is rooted in a severe lack of housing supply in every community, city and neighbourhood across the country.

In taking learnings from other countries such as Australia, Sweden and New Zealand, which have all implemented similar policies around blind bidding, we know that price inflation has continued. 

 

So, what’s the solution? 

 

We need a coherent and achievable national housing strategy that addresses the lack of supply and improves affordability for more Canadians. To do this, collaboration between our federal, provincial and municipal governments is the key. 

However, it’s not enough to just build more homes. We need to build more diverse housing to fill the “missing middle,” with municipal zoning laws that support this.

We need to expand capacity for laneway developments and the like.

We need to be more strategic and visionary in how we can use existing lands and real estate to drive our housing supply.

Ultimately, if we compromise wetlands, grasslands and reservoirs, then we potentially make new-home developments and existing communities susceptible to extreme weather events, which is likely to drive up the cost of insurance for all homeowners.

The strategy also needs to see to it that new housing development projects are getting approved and built much faster, by cutting the red tape, and through immigration policy that considers Canada’s labour shortage, including skilled trades.

We need to look at all options to offset the pending shortfall. And the vast majority of Canadians agree.

According to a recent Leger survey commissioned by Re/Max, 72 per cent of Canadians believe that as municipal, provincial and federal governments make plans to increase housing supply, it’s important that they also consider the diversity of new housing that’s being developed.

 

Transparency: Important but no remedy for piecemeal solutions

 

Transparency in the market will always be a good thing, but we need to differentiate between positive measures to increase fairness in the market, and piecemeal solutions that skirt around the core problem: Canada’s lack of housing supply. 

It’s important that Canadians see the end of blind bidding for what it is: a more transparent home-buying and selling process, not a market-cooling measure. For the long-term health of the market, we must protect it now, and for years to come.

 

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]]> https://realestatemagazine.ca/open-bidding-options-in-ontario-a-small-piece-of-a-larger-puzzle/feed/ 9 OPINION: Toronto’s increased Vacant Home Tax – more harm than good https://realestatemagazine.ca/opinion-torontos-increased-vacant-home-tax-more-harm-than-good/ https://realestatemagazine.ca/opinion-torontos-increased-vacant-home-tax-more-harm-than-good/#comments Mon, 20 Nov 2023 05:03:37 +0000 https://realestatemagazine.ca/?p=25699 Toronto has the greatest proportion of Canada’s 160,000+ professional realtors – there’s opportunity to lead change and set examples for provincial and federal governments

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In October, Toronto’s City Council voted to increase the city’s Vacant Home Tax (VHT) from one per cent to three per cent of a home’s value. This increase comes on the heels of the City’s approval of a graduated Municipal Land Transfer Tax (MLTT) in September 2023, which added thresholds for high-value residential properties containing at least one, and not more than two, single-family residences.

Both measures were introduced as a means of dealing with Toronto’s budget shortfall while helping to mitigate the housing crisis. While action is needed to improve both challenges, let’s not fool ourselves into thinking that these taxes will improve housing supply and affordability.

Let’s be clear: taxation efforts are a band-aid solution – band-aids with a few holes.

 

Impacts trickle down to all

 

The MLTT may appear to only impact high-value homeowners at first glance, but the impacts trickle down to homebuyers at all price points. When luxury property owners aren’t listing their homes for sale, deterred by the higher tax on their next purchase (assuming they’re moving up the property ladder), move-up buyers have nowhere to move up to – leaving first-time buyers stuck in their rentals.

This causes stagnation, bringing fewer listings on stream, but a market needs to circulate in order to remain healthy and vibrant. This is particularly problematic in a market that saw listings decline by 23.5 per cent in 2023, Re/Max reports. One might argue that listings have increased recently, but as we’ve seen in the past, it won’t be long before conditions heat up again and competition returns to the market.

Meanwhile, the cost of rent has increased 4.1 per cent year-over-year in Toronto, Rentals.ca reports. With fewer affordable rentals and fewer listings, renters will continue to face barriers when entering the market.

Now let’s look at the VHT. In theory, any efforts aimed at bringing more homes into circulation are a good thing, but the current VHT has some gaps, including short-term rental properties, vacant properties that are listed for sale, properties that are undergoing renovations and more.

 

Recognizing the problem

 

Toronto has just come out of one of the biggest real estate booms in North America, thanks to a growing population, an influx of market activity and steadily rising property values. Yet, despite the taxes being collected from homeowners, the City is still facing a shortfall, in budget and housing alike.

We need to learn from this. It’s clear that the “tax solution” isn’t solving anything. Rather than continuing to squeeze homeowners, let’s instead focus on ways to promote and diversify new housing supply, to ensure it remains affordable and accessible to its residents.

 

What should be considered instead?

 

Densification and diversity

 

We need more supply – supply that should be developed with densification at its core and integrate a diversity of housing (missing middle, subsidized, co-ops, etc.), and a diversity of people and income levels.

 

Access and affordability

 

Access and affordability are prerequisites when we think about supply to avoid the perils of gentrification. The City has an opportunity to implement a new housing strategy that doesn’t rely on taxing residents as a means of revenue and supporting programs that address the root problem.

Yes, Toronto needs market-driven housing, but our housing strategy also needs to integrate subsidized housing and co-op models to ensure people working in these communities can also live in these communities. It’s critical that we explore strategies that offer not just a good return on investment, but a high standard of living and liveability for all – diverse and densified urban neighbourhoods do that.

 

Cap on tax-hikes

 

The City might consider capping measures like the VHT and the MLTT. The VHT has increased by two per cent since the beginning of 2023, which means homeowners will continue to be squeezed if caps aren’t put in place. Moreover, when it comes to the MLTT, a cap could be based on the average price point for any residential property in Toronto in 2008 when the MLTT was first introduced, which was $379,080, to ensure the costs are predictable for would-be sellers and don’t fluctuate with the market.

 

With 73,000 realtors, Toronto makes up the greatest proportion of Canada’s 160,000+ professional realtors. There’s an opportunity here to lead change on a municipal level and set examples for provincial and federal governments.

Yes, we have a housing crisis in Toronto, but leveraging the already fragile housing market to solve Toronto’s financial situation is not the solution. While we wait on long-term housing solutions, I encourage Toronto realtors and those across Canada to educate themselves on the most recent taxation laws in their municipalities to best counsel their clients on how to succeed in an ever-changing market.

 

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]]> https://realestatemagazine.ca/opinion-torontos-increased-vacant-home-tax-more-harm-than-good/feed/ 8 The life and legacy of Mr. P: How Frank Polzler changed lives and inspired success https://realestatemagazine.ca/the-life-and-legacy-of-mr-p-how-frank-polzler-changed-lives-and-inspired-success/ https://realestatemagazine.ca/the-life-and-legacy-of-mr-p-how-frank-polzler-changed-lives-and-inspired-success/#comments Thu, 20 Apr 2023 04:02:12 +0000 https://realestatemagazine.ca/?p=21715 Christopher Alexander remembers his grandfather, "Frank created countless opportunities that changed lives, thanks to his sheer determination to succeed and uplift those around him"

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]]> I always knew my grandfather was loved, but I’ll admit that I was taken aback by the sheer amount of outreach my family received when Frank Polzler, or “Mr. P,” as he was affectionately known, passed away on December 23, 2022, at the age of 89, with his daughter Pamela and son Michael by his side.

Most REM readers will have heard the name “Frank Polzler” and are likely familiar with the “maximum commissions” model and “independent contractor” status in the Canadian real estate industry. These are just a small part of Frank’s legacy and the impact he’s had on the residential real estate industry.

Frank, an Austrian-born immigrant who came to Canada in 1953, brought with him visionary leadership and brave innovation, blazing a trail for tens of thousands of real estate professionals worldwide. 

 

“By the age of 65, when most people think about retirement, Frank was busy taking the Re/Max brand global.”

 

When Frank co-founded the first Re/Max region in Canada with his business partner Walter Schneider in 1980, little did he know that he was creating a real estate empire of about 47,000 brokers and agents at its peak in more than 40 countries worldwide. 

By the age of 65, when most people think about retirement, Frank was busy taking the Re/Max brand global, shaping how real estate happens and raising the bar for professionalism in the industry.

Frank is largely responsible for the brokerage model that we know and operate by today. Before this, the real estate world was mostly owned by banks, with smaller brokerages operating independently. Frank’s vision united the industry with a model that allowed brokers to be “in business for yourself, but not by yourself.”

Frank created countless opportunities that changed lives, thanks to his sheer determination to succeed and uplift those around him. Frank would also be the first to credit much of his business success to his strong family bond, with Re/Max as the common thread running through them—myself included.

Perhaps some of the most memorable and, arguably, best professional advice I ever received came from Mr. P. 

He was a humble and modest man who loved to tell bad jokes and great stories and was famous for his one-liners: “The sale begins when the customer says ‘no.’ Have fun and make money. Keep selling, never give up,” and “All my success went to the bank, not to my head.”

Words to live by, in my book.

 

“He was humble but always loved to brag about his cheap clothes and what he considered to be his biggest achievement—his family.”

 

Mr. P will always be remembered for his leadership and business acumen, but those who really knew him will remember him as a beloved father, grandfather and great-grandfather, a community builder and cherished friend. 

Despite his big achievements, Frank never cared about being in the spotlight. He was humble but always loved to brag about his cheap clothes and what he considered to be his biggest achievement—his family.

One thing that was consistent in the outreach my family received after Frank passed was how he inspired so many. 

“He changed my life.” 

“He inspired me to achieve success.” 

“He was a true gentleman.”

Frank’s impact on those around him, near and far, was overwhelming, to put it mildly.

No one is ever truly gone until the ripples they have created in their lifetime disappear—and in this spirit, Frank will never fade away.

 

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]]> https://realestatemagazine.ca/the-life-and-legacy-of-mr-p-how-frank-polzler-changed-lives-and-inspired-success/feed/ 9 Helping clients navigate the market in the current economic landscape https://realestatemagazine.ca/helping-clients-navigate-the-market-in-the-current-economic-landscape/ https://realestatemagazine.ca/helping-clients-navigate-the-market-in-the-current-economic-landscape/#comments Wed, 22 Feb 2023 05:01:14 +0000 https://realestatemagazine.ca/?p=20825 Factors like the rising cost of living, limited affordability and lack of transparency in pricing strategies are causing mounting frustrations for buyers and sellers

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]]> The purchasing power of households is being squeezed. Today’s homebuyers and sellers are navigating their real estate journey with mounting complexities, uncertainties and frustrations, from economic factors such as the rising cost of living and higher interest rates to the lack of affordable housing and beyond. 

Factor in the transactional frustrations linked to the limited transparency in below-market value listing strategies in an already expensive market, and it’s evident why many Canadians are struggling in the current market. 

According to Re/Max Canada, most Canadians have at least one concern when it comes to evaluating their homebuying or selling options (59 per cent). 

Consumer concerns

 

Beyond the implications on Canadian homebuyers and sellers, various housing-related factors impacting consumers, such as affordability and inventory challenges, will undoubtedly have a trickle-down effect on the real estate industry and the broader economy. 

According to Statistics Canada, the Real Estate and Rental and Leasing (RERL) sector weighs heavily on Canada’s gross domestic product (GDP), representing 13.5 per cent of our national economic vitality. With that, it’s important to recognize that a housing crisis is not restricted to the housing sector by any means.

It’s more critical than ever that Canadians receive professional, sound and strategic advice to both inform them and help them make the best decisions possible. 

Amid the evolving housing market and industry, this means counselling homebuyers and sellers in navigating not just the national affordability and inventory challenges but regional factors such as neighbourhood liveability and their environmental/climate risks in the area they choose to call “home.” The stakes are high.  

As an industry, what do we need to do? 

 

Get back to basics: Professionalism 

 

Given the critical importance of housing to the larger economy and Canadians individually, it’s time the real estate industry supports the practice of, and encourages consumers to work with, full-time professional real estate agents. 

Real estate should not be a side hustle practiced by those looking to make a quick buck. This undermines the credibility of realtors who treat this as a legitimate career, delivering critical advice daily to their clients. 

Canadians need to feel that they’re working with credible, third-party advisors who can best educate them on the process and the top trends likely to impact them and provide sound counsel on how to proceed. 

 

Transparency in pricing

 

The industry also needs to look at more standards of transparency in the pricing of properties, specifically developing a fair and consistent bidding process for buyers and sellers. 

It then continues within the offer process among prospective buyers and on the seller side to better manage their expectations. This transparency helps to remove any doubt that a realtor’s top priority is serving and advancing the diverse needs of their client. 

 

Increase supply and affordability 

 

Finally, we need to continue advocating for and supporting the development of an achievable and coherent national housing strategy that aims to increase supply and affordability in every town, city and community across the country. 

Collaboration between our federal, provincial and municipal governments is the key to success – through long-term, sustainable solutions. 

Specifically, governments should be expanding municipal zoning laws to allow for a greater diversity of housing, such as the missing middle; expanding capacity for laneway developments; and being more strategic and visionary in how we can use existing land to drive our housing supply in a way that doesn’t compromise the health and liveability of our environments. 

 

Take accountability

 

When Canadians are confronting one of the most financially significant transactions of their lives, as realtors, it’s our duty to provide the best counsel possible. To do this consistently, we all need to get on the same page when it comes to industry standards. 

Let’s take accountability, work to ensure that we maintain the high standards of a professional realtor and give Canadian homebuyers and sellers what they really deserve.

To dive deeper into the key economic and transactional trends that are likely to be most influential this year, please view Re/Max Canada’s 2023 Industry Trends Report here.

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]]> https://realestatemagazine.ca/helping-clients-navigate-the-market-in-the-current-economic-landscape/feed/ 1 Christopher Alexander: Rotten BANANAs threaten the future of Ontario’s housing market https://realestatemagazine.ca/christopher-alexander-rotten-bananas-threaten-the-future-of-ontarios-housing-market/ https://realestatemagazine.ca/christopher-alexander-rotten-bananas-threaten-the-future-of-ontarios-housing-market/#respond Wed, 16 Feb 2022 05:00:49 +0000 https://realestatemagazine.ca/christopher-alexander-rotten-bananas-threaten-the-future-of-ontarios-housing-market/ I’ve said it before and I’m not alone in my stance: the only solution to our housing crisis is to build more homes. But that message is being drowned out by cries of “not in my back yard".

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]]> We can all agree that Ontario, and Canada, needs more homes. The supply shortage is at the root of an affordability crisis that threatens to derail one of our country’s key economic drivers and the futures of many Canadians who, even if they can afford an average-priced home, are unlikely to find one for sale.

There are other factors compounding our housing crisis: homeowners’ hesitancy to list for fear of getting locked out of the market and a growing population that will put further pressure on an already fragile ecosystem. (You can only imagine the impact that a new home equity tax or other such “cooling” measures might have.)

With the Ontario housing market under immense pressure, the provincial government took the right first step of establishing a Housing Affordability Task Force late last year, with a goal of finding realistic solutions to increase supply. The nine-member panel of housing experts and industry insiders has been head-down for the last two months, consulting and drafting recommendations. Last week, the group made 55 of them, for what it calls an “achievable” goal: to build 1.5 million new homes in Ontario over the next 10 years.

But there’s another very real risk threatening progress: NIMBYs.

I’ve said it before and I’m not alone in my stance: the only solution to our housing crisis is to build more homes. But that message is being drowned out by cries of “not in my back yard,” from homeowners who want to preserve the character and liveability of their communities, and from city mayors and councillors, whose political futures hang in the balance. In its report, the Task Force referenced a new acronym to reflect these sentiments: BANANA (Build Absolutely Nothing Anywhere Near Anything).

Quite simply, if nothing changes, nothing changes. Let that sink in for a minute: the lack of listings, the rising prices and ever-declining options for home ownership.

Re/Max Canada’s research  shows that Canadians value liveability when choosing a place to live and buy a home, and for the majority, the chief criteria for liveability is affordability. Liveability is impossible to achieve if communities are inaccessible and unsustainable due to prohibitive price growth and a shortage of listings, which is the current situation from coast to coast.

I commend proposals that aim to increase the supply of homes in urban neighbourhoods, which continue to attract the bulk of our population. In order to house them, we need more high-density, infill residential development. We need more laneway housing, secondary and garden suites and multi-family dwellings. We need less red tape and less politicization of residential development, and less NIMBYs and BANANAs that threaten the freedom and future of home ownership for all.

To balance pressure from NIMBYs with pleas from hopeful homebuyers, we need to recognize that “densification” can be a good thing. It can have positive impacts on our mental and physical health, not to mention the environmental benefits of having more walkable neighbourhoods. We just need to be open to new ideas for densification and expansion of residential development, both within our urban centres and in our suburban and rural communities.

Densification can’t happen hastily. It must be a thoughtful, co-ordinated effort across all levels of government, that is considerate of the character of our communities, their existing residents and those who hope to call them “home.” If done right, densification can be a beautiful thing, refreshing and revitalizing aging neighbourhoods, both in their esthetic and in the fabric of their make-up.

High-density infill that meets everyone’s needs must be thoughtful and creative, in keeping with the scope of the current community while accommodating future growth. The Province of Ontario’s consultation with housing experts and the real estate industry is a great thought-starter, and collaboration with municipal and federal governments can help make that 1.5-million-home milestone a reality.

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]]> https://realestatemagazine.ca/christopher-alexander-rotten-bananas-threaten-the-future-of-ontarios-housing-market/feed/ 0 Christopher Alexander: A decline in real estate prices is unlikely https://realestatemagazine.ca/christopher-alexander-a-decline-in-real-estate-prices-is-unlikely/ https://realestatemagazine.ca/christopher-alexander-a-decline-in-real-estate-prices-is-unlikely/#respond Wed, 30 Sep 2020 05:00:35 +0000 https://realestatemagazine.ca/christopher-alexander-a-decline-in-real-estate-prices-is-unlikely/ The strength of the Canadian real estate market has continued to prove itself time and time again during the pandemic. So why all the fear mongering by Canada Mortgage and Housing Corp. (CMHC)?

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]]> The strength of the Canadian real estate market has continued to prove itself time and time again during the pandemic. While we’re not out of the woods yet, we are expecting continued growth for the duration of 2020, with an active market for the foreseeable future and balanced conditions at the national level into 2021. This is great news for Canadians.

So why all the fear mongering by Canada Mortgage and Housing Corp. (CMHC)?

The CMHC chief economist is Bob Dugan, who told reporters at a press conference recently that the agency stands by its previous forecast in May that warned of a decline in Canadian house prices between nine and 18 per cent.

“I’m not convinced that we have a sustainable basis for housing demand in the economic disturbance that’s going on related to COVID-19,” Dugan said. “That’s why I say I stand by the forecasts.”

We expressed our concerns over CMHC’s predictions in the spring, and Dugan’s latest statement continues to raise eyebrows – ours, and other industry insiders as well, as the Canadian housing market stays on its upward course.

While I can appreciate some of the reasoning that went into CMHC’s prediction, especially in the spring when so much was still unknown, the market data doesn’t support such a steep price decline, especially with the two largest real estate markets of Toronto and Vancouver continuing their upward momentum. The Prairies are facing different circumstances and challenges due to the resources sector. However, Ontario and B.C. are expected to offset slower activity in Saskatchewan and Alberta.

Nobody could have predicted the success of the Canadian real estate market in the wake of COVID-19. At the height of the pandemic, March and April 2020 experienced dramatic declines in activity, but transactions quickly resumed across the country as real estate professionals and consumers alike adapted to social distancing measures and embraced technology to continue transacting, despite disruptions to the economy and every facet of daily life.

Last month we at Re/Max Canada revised our forecast for national average house price in 2020, increasing it to +4.6 per cent from our original expectation of +3.6 per cent at the end of last year.

In terms of declining prices, “the impact was on rent as opposed to home ownership,” said Benjamin Tal, chief economist at CIBC World Markets. His optimism in the Canadian housing market was due to continued low interest rates and strong pent-up demand. “Eighty per cent of jobs lost were in the service sector. Many of them were low-income and many of them were renters. So, the impact was on rent as opposed to home ownership,” he noted.

RBC Economics recently reported that a large-scale decline was unlikely. “The pandemic completely disrupted normal seasonal patterns by shifting activity from the spring to summer. With pent-up demand now largely exhausted, we see activity cooling later this fall. This should let some of the steam out of prices though not to the point of causing outright declines on a large scale.”

TD’s Beata Caranci also commented on Canada’s “swoosh” economic recovery and the housing market. The level of unemployment suggests the housing market should not be as active as it is. However, when you look at income levels, it all makes sense. Incomes today aren’t behaving like we’re in a recession, Caranci explained, and incomes are being supported at the same or at higher levels than in previous recessions. So, there’s a complete disconnect between the employment rate and income levels, which is adding fuel to the housing market.

If the real estate industry disagrees and economists disagree, just where is the CMHC getting its insight to support such a steep decrease?

Recently the Ontario Real Estate Association surveyed Ontarians, finding a strong majority think housing is an important (60 per cent) or somewhat important (32 per cent) contributor to the provincial economy recovery. They are now pushing on governments to help stimulate the market with incentives like a “Land Transfer Tax holiday” to help get more homes on the market and address some of the supply issues the province is currently facing.

I do think we may see a “hangover” from the busy market we’re experiencing right now, but overall as we head into 2021, I think a prediction of more balanced conditions across the Canadian housing market is warranted. But an 18-per-cent decline in prices is highly unlikely.

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]]> https://realestatemagazine.ca/christopher-alexander-a-decline-in-real-estate-prices-is-unlikely/feed/ 0 Christopher Alexander: It’s time for a reality check https://realestatemagazine.ca/christopher-alexander-its-time-for-a-reality-check/ https://realestatemagazine.ca/christopher-alexander-its-time-for-a-reality-check/#respond Wed, 30 Oct 2019 05:00:11 +0000 https://realestatemagazine.ca/christopher-alexander-its-time-for-a-reality-check/ The new minority government could be just what Canada needs to pull it out of this housing quagmire, which only seems to have gotten muddier since the Liberals took power in 2015.

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]]> From a housing perspective, it was an interesting and enlightening 40 days leading up to Canada’s 2019 federal election. Justin Trudeau’s new mandate was far from a landslide win, resulting in a Liberal minority government at the helm. This means Liberals will need the support of the other parties to pass legislation. Could this prospect of collaboration be a saving grace for Canada’s housing?

One thing Canadians have agreed on is that housing affordability and the cost of living are a top priority. The question about which party would effectively address those concerns was largely up in the air, and it still is.

The new minority government could be just what Canada needs to pull it out of this housing quagmire, which only seems to have gotten muddier since the Liberals took power in 2015. The last four years have seen skyrocketing housing prices and rents rising in lockstep, while housing supply dwindles.

This story of unsustainable growth in parts of Ontario is offset by the turmoil in Western Canada, with Liberal policies taking the brunt of the blame for what’s happening in British Columbia, Alberta and Saskatchewan. Generally speaking, the Liberals haven’t had positive impacts on real estate – yet.

The solution to Canada’s housing woes, at least for the next four-year term (barring any political shake-ups, which could cut that short) might be found through collaboration.

The Conservatives and New Democrats laid out some seemingly solid plans to address the housing crisis in their 40-day campaign period, tabling changes to the mortgage stress test, a return of 30-year amortizations for first-time homebuyers (even though it’s likely that both of these policies would have only pushed prices up in the long run) and addressing housing supply. Meanwhile, the Liberals are largely planning to stay the course, much to the chagrin of many Canadians who have been hoping, if not praying, for real estate relief.

With that being said, Team Trudeau has made some moves on the housing front over the last four years.

The National Housing Strategy is one of the wins, established in 2017 to help reduce homelessness and increase the availability and quality of affordable housing, at a cost of $50 billion over 10 years. Trudeau also increased the amount first-time homebuyers can withdraw from their registered retirement savings plan, from $25,000 to $35,000. And let’s not forget about the First-Time Home Buyer Incentive, an interest-free government loan covering up to 10 per cent of a home’s price, to lower the mortgage payments.

On the questionable side of the Liberals’ 2019 campaign was their promise to boost the First-Time Home Buyer Incentive amount in Toronto and Vancouver, to offset the sky-high prices in these markets. But when the average home hovers around $800,000 and $1 million respectively, the First-Time Home Buyer Incentive isn’t much of an incentive. The Liberals have also tabled a one-per-cent speculation tax on vacant homes owned by foreigners, which could limit price growth. But in reality, this policy won’t have much impact on the average Canadian.

What the Liberals have failed to address entirely is the prohibitive mortgage stress test, which was implemented to put the brakes on Canada’s runaway housing markets. While it did help rein in unprecedented price growth in Toronto and Vancouver, the policy has come under scrutiny for being outdated and ultimately, a barrier to home ownership. I am 100 per cent supportive of responsible debt levels and policies to ensure that goal, but even with the recent modifications, the mortgage stress test is more hindrance than help.

Another gap in the Liberals’ platform is the issue of housing supply, which is at the crux of our affordability crisis. Between the lack of rental housing and supply of affordable housing and less incentive for developers to build new communities, Canada is experiencing a serious housing shortage. This is particularly true in Vancouver and Toronto, where the average cost of living continues to tick upward, and residents are left scrambling for affordable alternatives.

It seems to me that Trudeau needs a reality check, which may come from the Conservatives, NDP and Bloc Québécois. By taking the best proposals put forth by each party, perhaps a patchwork solution will be found. But the collaboration can’t stop at the federal level. Trudeau must work closely with provincial and municipal governments, as well as the private sector, to create more housing supply.

Many Canadians, especially millennials, new immigrants and those employed in the so-called “gig economy” feel home ownership is becoming less tangible by the day. While politicians of all stripes acknowledge the mounting urgency of affordable housing, few are offering any timely or compelling solutions.

Real estate is still one of the safest and most reliable financial investments for Canadians. As real estate professionals, it’s our duty to help prospective homebuyers navigate this tricky landscape. Outside of creating more supply and affordable housing, I urge governments to refrain from meddling with the private real estate market. History shows that whenever they do, the effects are mostly detrimental.

I urge Canada’s new government to work together to develop a national housing strategy that addresses all issues relating to affordability. The health of Canada’s housing is at stake.

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]]> https://realestatemagazine.ca/christopher-alexander-its-time-for-a-reality-check/feed/ 0 Sponsored: Getting Back to Basics: As technology changes the real estate business, remember your roots https://realestatemagazine.ca/sponsored-getting-back-to-basics-as-technology-changes-the-real-estate-business-remember-your-roots/ https://realestatemagazine.ca/sponsored-getting-back-to-basics-as-technology-changes-the-real-estate-business-remember-your-roots/#respond Tue, 11 Jun 2019 05:00:18 +0000 https://realestatemagazine.ca/sponsored-getting-back-to-basics-as-technology-changes-the-real-estate-business-remember-your-roots/ Real estate success is built on high-touch, emotional relationships between agents and consumers, which we cannot forget. This begs the question: will technology ever replace the human touch?

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]]> The following is sponsored, promotional content. This content is not written by and does not necessarily reflect the views of REM.

It’s a golden age for consumers, with information at their fingertips and convenience being the ultimate hot commodity. The retail, finance and travel industries have been forever changed, with access to products and services just a simple swipe, scroll and screen-tap away. The real estate industry is not far off, with homebuyers and sellers gaining increased access to online property listings, sold data, digital transactions, agent profiles and broker ratings. Technology is an enabler, empowering consumers to educate themselves on the real estate transaction.

What a great time to be in this business, and agents who wish to stay relevant with consumers and competitive against their rivals must adopt technology in their business, much like they have in life outside the office.

Discounting the importance of technology could prove fatal for the real estate professional, but I’m here to argue that perhaps the bigger mistake lies in neglecting what attracted most of us to this field in the first place—the human experience.

As real estate agents, we make dreams come true. Our objective, beyond a signed contract, is to provide attentive service, accurate information and the best advice in what is the most significant transaction most of us will ever make in our lifetime—a home. Successful agents are constantly asking themselves: how can I better serve my clients? Technology is part of the answer, but it’s certainly not the whole story.

As the use of real estate technology and digitization reach an all-time high, it’s more important now than ever for agents to get back to basics. Real estate success is built on high-touch, emotional relationships between agents and consumers, which we cannot forget.

This begs the question: will technology ever replace the human touch? The short answer is, only if you let it.

There are a number of new companies coming on stream, tempting consumers with their low-cost, do-it-yourself approach to buying and selling a home. The onus is on the real estate professional to prove his or her true worth.

Technology should be a complement to the human experience. Agents will be continually challenged to strike a balance between old-school and new-school business practices in order to achieve growth. The reality is, the majority of commissions will still come from mining a database, not the single-digit conversions from the internet.

Here are some ways agents can can up their game in today’s connected real estate landscape.

Online reputation management matters.

Consumers trust online reviews just as much as they do personal recommendations. Good news… right? Clearly there’s power in having digital clout and highlighting your online rating, but it must be groomed and managed on a regular basis. Encourage your clients to rate your services online. If a less-than-positive review surfaces, address it as soon as possible. The goal is to address the original concern, and to show others that you care about your clients.

Forge meaningful, transparent relationships—online and offline.

It can be challenging for buyers and sellers to navigate the real estate transaction and weed out misinformation online. This is where the real estate agent relationship can never be truly replaced. Prospects may find initial information online, but will come to you as a trusted, dependable advisor during the buying and selling process. Additionally, be forthcoming—yet optimistic—about the complexities of the homebuying processes, contracts, appraisals, etc. Your candor educates the client all while showcasing your credibility.

Don’t forget about personalization.

The home buying and selling process increasingly demands technology, but more than this, it requires a customized touch. We must remember to tailor our approach to resonate with each individual client; while one may request a digitally advanced process, another may wish for hard paper copies of everything. The key to success is listening and responding in the way the clients prefers.

Sometimes you need to put the phone down.

Technology has optimized the way we do business, and many of us have adapted well. Maybe you text a client versus call them if you have a brief update. That being said, don’t be afraid to get your hands dirty. Tried-and-true best practices are not to be ignored. Meaningful outreach by way of brick and mortar, face-to-face conversations and open houses might have more of an impact than you may think.

In order to thrive among the ever-growing number of real estate disruptors, real estate professionals need to uphold the high standards that bring real value to the consumer. This is particularly critical in this era of online fake news, speculation around a housing crisis, rising housing prices and changing government regulations. Today’s homebuyers and sellers need realtors who are at the top of their game and dedicated to their real estate career—because Canadians who are making the biggest financial decision of their lifetime deserve that level of attention.

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